If Easing a Firm's Credit Policy Lengthens the Collection Period

question 100

Multiple Choice

If easing a firm's credit policy lengthens the collection period and results in a worsening of the aging schedule,then why might a firm take this action?

• A)to slow down an unsustainable growth in sales
• B)to meet competitive pressures
• C)to increase the payments deferral period
• D)to shorten the cash collection cycle

---

Definitions:

Information Report

An informational report presents data, facts, and feedback without analysis or recommendations, primarily used for informational purposes.

Reporting Progress

Communicating updates on the advancement or development of a project or work.

Progress Report

A document or presentation that outlines the development or advancement in a project or task.

Progress Report

A document that updates on the advancements or developments in a specific project or activity.